Hong Kong Company Formation And Its Advantages .pdf
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As a global hub with profuse amounts of information and prospects, sole proprietorship Hong Kong
formation gives unparalleled access to a consumer market that is anticipated to exceed 450 million people
in southern China alone. With first-rate infrastructure and a comprehensive legal system of its own, it
offers an interestingly viable financial & commercial milieu to numerous entrepreneurs, businessmen, and
traders. Consequently, Hong Kong is currently one of the most popular areas that offer international
entrepreneurs the opportunity to make a way into Chinese markets, with many people increasingly
establishing their own businesses in Hong Kong with different purposes. The whole idea is that it not only
enhances the image of the company itself, but also ensures that there is increasing competitive proficiency
in the global marketplace. The information below will assist you in figuring out if Hong Kong company
formation is the most favorable approach through which to accomplish this.
We know there are many causes and conditions that are responsible for the success of any business.
Hong Kong is believed to be one of the finest cities to launch and operate a business, as it scores high on
factors that matter to businesses. Below are some of the key advantages of starting a sole proprietorship
Hong Kong and will offer you with some of the important answers as to whether Hong Kong company
formation is the most advantageous approach for a business.
1. Being an international hub of information exchange and a major transportation center, Hong Kong is
the crucial point of all nautical activities in southern China. It is one of the most important seaports
globally, especially with regards tonnage of shipping using its amenities, cargo managed and the number
of commuters transported.
2. World’s most energetic market driven by the principle of free enterprise, free trade and free markets
open to everyone. No constraint on inward bound and outward investment, no foreign exchange controls
and no foreign ownership limitations.
3. Tactically situated extremely close to China. Air, rail, road and sea links are contemporary and efficient
and provide unparalleled entrance to China’s flourishing southern provinces for countless foreign
5. With very low tax rate (around 16.5% on net profit), and no tax liability for income not earned in Hong
Kong (offshore income)
6. With strong infrastructure, securely established social and political background, most businesses opt to
found business undertakings in Hong Kong as it considered to be politically steady with a pro-business
attitude and free market ideologies.
7. Benefit from smooth and convenient international banking system. A number of banks take into
account the interest of 32 foreign countries. The Hong Kong banking and financial services is handled by
the Hong Kong Monetary Authority (HKMA). The features and advantage of availing of Hong Kong for
private banking, bank accounts, corporations and offshore asset protection are widespread.
Sole proprietorship Hong Kong Formation procedure is a reasonably uncomplicated and smooth
process. The main requirements are:
1. At least one company director/shareholder and a Hong Kong resident company secretary (above the
age of 18) are mandatory.
2. Confirmation regarding the company name and corporate structure
3. A smallest issued capital prerequisite of HKD 10,000 and paid-up capital requirement is amounting to
only the sum of one dollar.
4. There is almost no constraint in the field of business scope when you found a Hong Kong company.
5. Business requirements, like opening a Hong Kong corporate bank account, establishing an office
(virtual office is also an alternative).